Brad DeLong on Intellectual and Technical Progress | Conversations with Tyler

19th Century Growth

Brad DeLong explores the transformative economic growth of the late 19th century, highlighting its unprecedented nature. He explains that the period from 1870 to 1920 marked a significant shift, with global real income growth averaging 1.3% per year, a stark contrast to the previous century 1. This era saw the emergence of modern consumer societies and technological advancements that laid the foundation for today's world.

You only go from having no indoor plumbing and no public health, and so having half your babies die before the age of five to one, in which infant mortality is extremely low and genuine. Astonishing tragedy.

--- Brad DeLong

DeLong emphasizes that while growth continues, its impact feels less urgent due to the significant improvements in living standards achieved during this transformative period 2.

   

Middle Income Trap

The concept of the middle-income trap is examined through the lens of countries like China and India. Brad DeLong describes it as a persistent challenge where societies become more inclined to join governmental regimentation rather than engage in entrepreneurial ventures 3. This trap is exacerbated by internal and external colonialism, where elites view the rest of society as prey, hindering economic development.

The middle income trap looks to me a lot like that thing expanding, expanding its reach, that governmental technology of appropriation improves along with other technologies.

--- Brad DeLong

Despite some global convergence since 2000, DeLong warns that political developments in China and India may reinforce this trap, challenging hopes for economic progress 3.